Zavvi shuts another 18 stores

Home entertainment retailer, Zavvi, has closed 18 of its stores. It comes in a month which has already seen it shut over 20 stores.

The closures will range from central London to Glasgow. It will lead to the loss of over 350 jobs.

The remaining 74 stores will remain open for business as the administrator, Ernst & Young, continues to attempt to sell the business as a going concern.

The administrator says it has received “over 70 expressions” of interest” but none wanted to take on the entire business.

The chain went into administration on Christmas Eve, after a month of difficult trading after its main supplier Entertainment UK followed sister company Woolworths into administration in November.

The Zavvi group was the UK’s largest independent entertainment retailer and sells DVDs, CDs and games. It was formed after a management buy-out of the Virgin Group’s Virgin Megastore division in September 2007.

The retailer posts its sales slump following news last night (January 13) that its chief executive Chris Ronnie’s position is precarious over the seizure of his stake in the business by the now defunct Icelandic bank Kaupthing.

The other directors, including new chairman and former Selfridges boss Sir David Jones, were unaware of the transfer until Kaupthing’s administrators informed them yesterday morning, and have subsequently begun an investigation.